Market mispricing often happens when companies change their core business

One thing I’ve noticed over the years is that the market can lag badly when a company transitions into a completely different type of business.

If investors still categorize a firm as “fintech” or “crypto-adjacent,” but the balance sheet starts filling with real estate assets or mortgage portfolios, the valuation multiples can remain stuck in the old narrative.

Sometimes the re-rating only happens once the new assets start showing up clearly in financial statements.